1. A. The premiums charged for credit health insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .17 of this chapter may not exceed, on policies of credit health insurance for which a single premium is charged in advance for the entire duration of the insurance and the indebtedness is repayable in equal installments, the amount shown in the table below for each $100 of the initial amount of insured indebtedness: Prima facie premium rates for policies of credit health insurance under which the indebtedness is insured for periods other than those shown above but not in excess of 120 months, shall be determined by straight-line interpolation of the above rates with the results rounded to the nearest cent per $100 of initial amount of insured indebtedness. For purposes of this regulation, the term “initial amount of insured indebtedness” means the originally scheduled total of payments under the loan contract if the loan payments are covered in total, or means the proportionate amount of the originally scheduled total of payments if a pro rata portion of the indebtedness is covered.

   Number of Months in Which the Indeptedness Is Insured	Prima Facie Single Premium Rate Per $100 of Initial Amount of Insured Indebtedness
   	Benefits Not Retroactive Elimination Period			Retroactive Benefits Waiting Period
   	7 days	14 days	30 days	7 days	14 days	30 days
   2	$0.50	—	—	$0.92	—	—
   3	0.71	$0.43	$0.21	1.28	$0.92	$0.64
   6	1.06	0.71	0.28	1.77	1.28	0.92
   12	1.42	0.99	0.57	2.13	1.56	1.21
   18	1.77	1.28	0.85	2.48	1.84	1.49
   24	2.13	1.56	1.13	2.84	2.13	1.77
   30	2.48	1.84	1.42	3.19	2.41	2.06
   36	2.84	2.13	1.70	3.55	2.69	2.34
   42	3.12	2.34	1.91	3.83	2.91	2.55
   48	3.33	2.48	2.06	4.04	3.05	2.69
   54	3.55	2.62	2.20	4.25	3.19	2.84
   60	3.76	2.77	2.34	4.47	3.33	2.98
   66	3.97	2.91	2.48	4.68	3.47	3.12
   72	4.11	2.98	2.55	4.82	3.55	3.19
   78	4.25	3.05	2.62	4.96	3.62	3.26
   84	4.40	3.12	2.69	5.11	3.69	3.33
   90	4.54	3.19	2.77	5.25	3.76	3.40
   96	4.68	3.24	2.84	5.39	3.83	3.47
   102	4.82	3.33	2.91	5.53	3.90	3.54
   108	4.96	3.40	2.98	5.67	3.97	3.61
   114	5.10	3.47	3.06	5.81	4.04	3.68
   120	5.24	3.54	3.13	5.95	4.11	3.75

2. B. On policies of credit health insurance with elimination or waiting periods of 7, 14, or 30 days, and with modes of premium payment other than single premium, the prima facie premium rates may not exceed rates which are actuarially consistent with those in §A of this regulation.

3. C. Other Types of Credit Health Insurance.

   1. (1) With respect to critical period disability insurance and lump sum disability insurance, the premium rate charged by an insurer may not exceed a rate that is determined by adjusting the applicable prima facie premium rate set by §A of this regulation to an actuarially equivalent rate approved by the Commissioner.
   2. (2) For all other types of credit health insurance, the prima facie premium rates shall be subject to approval by the Commissioner and may not exceed rates which are actuarially consistent with those specified in §§A and B of this regulation.
4. D. Credit health insurance premiums for elimination or waiting periods of 7, 14, or 30 days may not be approved for policy terms less than the shortest term for which a premium rate is shown under the respective columns in §A of this regulation.
5. E. On policies of group credit health insurance issued on the outstanding balance, a composite monthly outstanding balance premium rate shall be used instead of the rates referred to in §C of this regulation. The rates under this plan may not exceed those shown in the schedule immediately below, with the rates being based on the amount of insured indebtedness currently being repaid. The composite rate shall be applied to all outstanding balances under the plan each month irrespective of the duration of the loans. Application for a higher rate under this type of plan may be made upon a showing of need for an increased rate on a basis actuarially consistent with Regulation .18D of this regulation. 14 Day Nonretroactive --- $0.08 30 Day Nonretroactive ---- 0.07 14 Day Retroactive ------- 0.11 30 Day Retroactive ------- 0.09

6. F. Joint Credit Health Insurance.

   1. (1) For credit health insurance issued to cover two debtors jointly, the monthly benefit payable upon the total disability of the first to be totally disabled during the term of the coverage, the premium for the health insurance benefits may not exceed 1.80 times the premium that would be charged if one debtor alone were insured.
   2. (2) To determine a unit rate for joint health coverage, the insurer may use the unit rates specified in this chapter for single health coverage, with the product of the single unit rate times 1.80 being rounded to the nearest cent.
7. G. The prima facie premium rates for credit health insurance in this regulation apply to all premiums charged on or after March 1, 2001, for every class of business.

Authority: Commercial Law Article, §12-312 and Title 12, Subtitle 3; Insurance Article, §§2-109, 13-110, 13-111, and 13-112; Annotated Code of Maryland

Effective date: January 1, 1978 (4:25 Md. R. 1940)

Chapter revised at 7:11 Md. R. 1035

Regulations .04 and .21 amended as an emergency provision effective September 1, 1980 (7:14 Md. R. 1345); adopted permanently effective December 30, 1980 (7:24 Md. R. 2256)

Regulations .13 and .17 amended effective January 28, 1985 (12:2 Md. R. 139)

Regulation .13 amended effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .15 amended effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .24D adopted effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .27 amended as an emergency provision effective June 24, 1980 (7:14 Md. R. 1345); adopted permanently effective December 30, 1980 (7:24 Md. R. 2256) This amendment changed the effective date given in the Notice of Final Adoption (see 7:11 Md. R. 1035) from July 1, 1980 to September 1, 1980

Annotation: Regulations .04F(14), .20, and .21, concerning the regulation of maximum commissions, held valid and within the legislative grant of authority to the Insurance Commissioner. Agency quasi-legislative actions are not limited by a recorded administrative record. These regulations and their enabling statute do not violate the Contract Clause of the U.S. Constitution. Automobile Trade Association v. Insurance Commissioner, 292 Md. 15, 437 A. 2d 199 (1981).

Chapter recodified from COMAR 09.30.51 to COMAR 31.13.01 effective September 7, 1998 (25:18 Md. R. 1439)

Regulation .04B amended effective May 15, 2000 (27:9 Md. R. 860)

Regulation .06A amended effective May 15, 2000 (27:9 Md. R. 860)

Regulation .08A, B repealed effective May 15, 2000 (27:9 Md. R. 860)

Regulation .29 adopted effective May 15, 2000 (27:9 Md. R. 860)

Chapter revised effective March 1, 2001 (27:22 Md. R. 2062)

Regulation .04B amended effective October 12, 2015 (42:20 Md. R. 1266); November 7, 2016 (43:22 Md. R. 1223)

Regulation .09A amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .13 amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .15A, E amended effective June 1, 2016 (43:5 Md. R. 387)

Regulation .17 amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .21A amended effective November 7, 2016 (43:22 Md. R. 1223)

Regulation .22C amended effective February 27, 2017 (44:4 Md. R. 256)